HRM

Strategic Human Resource Management (SHRM)

is concerned with longer-term people issues and macroconcerns about structure, quality, culture, values,
commitment and matching resources to future needs.
is the result of a set of decisions a company makes about
the humans with whom it does business.
Subjective techniques
are procedures that turn the opinions of experienced personnel
into formal forecasts. They take a considerable amount of key
personnel time. Typically used for adjustment purposes in shortrange product forecasting.
Formal forecasting technique
Experienced personnel such as sales people, corporate
executives, outside experts are most likely to use this
technique. An advantage of formal forecasts to subjective
techniques is that they take into account the full wealth of key
personnel experience and require little information.
The satisfaction of workers in Germany is most likely to be
greater than in France.
Workers compensation
gives survivors in the case of death at work burial allowance
and income benefits.
Expatriate failure is in most cases due to domestic (family)
issues.
Adverse impact
Employment policy or practice, while neutral on the
outside, adversely impacts against a particular racial,
ethnic or sex group.
Substantially a different rate of selection in hiring,
promotion or other employment decisions which works to
the disadvantage of members of a race, sex or ethic group

Cultural relativism
is the principle that a humans beliefs and activities should be
understood in terms of his or her own culture.
Recruiting costs include advertising costs
Training process
can be broken into three phases, namely: Assessment, Training,
Evaluation
Successful benefit strategy
Three areas: benefit mix, flexibility on the benefits & benefits
amount
Individual-centred compensation system
focuses on employee contribution and increases compensation
Proprietary date is a critical ethical issue for HR managers
related to technology use in the environment
Socio-Cultural level
is the change in consumer behaviour which in the digital age
requires ongoing research.

S TRATEGIC
Project
is a temporary one-off event
Personal Roster
one should consider minimal occupation, expected demand and
limitations
Intrinsic Job Motivation
mostly includes a feeling of responsibility
Comes from rewards inherent to a task or activity itself - the
enjoyment of a puzzle or the love of playing

Extrinsic Job Motivation

comes from outside of the performer. Money is the most
obvious example, but coercion and threat of punishment are
also common extrinsic motivations.
The European Works Council
includes the function of an informing staff of cross-national
issues
Cultural Organization Changes
may arise resistance due to maintaining values & norms
Authority
is the right to make decisions that are necessary to perform a
task
Total Quality Management (TQM)
is a system designed to achieve the desired level of customer
satisfaction at minimal expense and should be given to all
including management
Deregulation & Privatization
are economical trends having influence on media
The amount of government intervention in the economic
process is a classic issue for companies
Power/Interest Matrix
stakeholders with a low interest in strategy and a high degree of
power must be kept satisfied
Scenario Building
is used to understand how highly uncertain business
environments might affect an organisations strategies
Linear Phasing (in Project Management)
phases take place in succession, one after another
Consultation & Report Structure
two of the most important communication channels in PM

Nature of Service Classification (Lovelock)

is based on the criterion of tangible and intangible criteria
based on the service performed for peoplr or to peoples
possession
High Volume Operation
is the key to produce highest volume at a minimum variable
cost
Peripheral Services
Tickets you buy in a cinema
Facility Service
added to a core service so it works
Theme Based Service
create a link between the inherently varied supply of goods,
service and experiences
Strategic Drift
occurs when an organizations strategies progressively fail to
address heir strategic position
Synergy (Zusammenwirken)
occurs where value can be enhanced across complimentary
business units
Education & Communication Style Approach
is explaining the reasons and means to change
Minzbergs Adhocracy (flexible Organisationsstruktur)
is a stereotype of organisation, developed in organisations
tacked by constant changes

R ESEARCH
Marketing Research the systematic design, collection,
analysis and reporting of data relevant to a specific marketing
situation facing an organization

Exploratory Research marketing research to gather

preliminary information that will help define problems and
suggest hypotheses
Descriptive Research marketing research to better describe
marketing problems, situations, or markets, such as the market
potential for a product or the demographics and attitudes of
consumers
Causal Research marketing research to test hypotheses
about cause-and-effect relationship
Qualitative Data Peoples opinions and attitudes towards a
product or service
Quantitative Data Collecting data for numerical analysis
Survey Research is a method often used for quantitative
research
Observational Research Gathering primary data by
observing relevant people, actions and situations
Ethnographical Research A form of observational research
sending trained observers to watch an interact with consumers
on their natural habitat
Sampling Segment of the population for marketing research
to represent the population as a whole
Primary Data Firsthand information taken from respondents
Secondary Data has already been published
Main difference between primary & secondary data is that
secondary data is gathered for different purposes than they are
intended for
Survey Research gathering primary data by asking people
questions about their knowledge, attitudes, preferences, and
buying behaviour

Experimental Research gathering primary data by selecting

matched groups of subjects, giving the, different treatments,
controlling related factors, and checking for differences in group
response
Survey Reach provides overviews of recent developments by
means of questionnaires
T-Test assesses whether the means of two groups are
statistically different form each other
Longitudinal Research involves the same group of people
over an extended period
Ratio Measurement Level server logs keep track of how
much time users spend on a website find out about how long
users are online, measured in seconds
Preliminary Measurement Essential to make statements
about a campaigns effectiveness at any level of validity
Intersubjectivity concept based on mutual agreement, not
on universal validity
Post cheap way to approach respondents

M ARKETING
Marketing is according to the MIC The management process
responsible for identifying, anticipating and satisfying customer
requirements profitably.
According to Kotler Satisfying needs and want through an
exchange.
Horizontal integration
merging of two or more companies involved in the same level of
production (fx Sony & BMG)
Vertical integration

merging two or more companies involved in different, but

relating activities or processes
Production concept
is useful when the costs of production are too high and it is
necessary to improve production to lower costs.
Internal Marketing
Orienting and motivating customer-contact employees and
supporting service people to work as a team to provide
customer satisfaction
External Marketing
Training service employees in the fine art of interacting with
customers to satisfy their needs
3 important marketing tasks for service companies
Competition
Managing quality
Increasing productivity
Strategic Plan
A company adapts to exploit opportunities in a continuously
changing environment
Straegic Planning
is the process of developing & maintaining a
strategic fit between the organisations goals
and capabilities and its changing environment
Product development (fx Radio 38)
Idea generation
Idea screening
Concept developing & testing
Marketing strategy & development
Business analysis
Product development
Test marketing
Commercialization

Appless IPhone is an example for a specialty product

Coca-Colass American dream is an example of a vision
Bob the Builder is an example for cult
positioning
Market stretching
the produces opts in favour of extending the lifestyle of the
format
Falks & Dierkings interactive experience model
Design & architecture
Fatalistic companies
are pessimistic
Customer-Based Brand Equity Pyramid (CBBE model)
Brand equity is based on a hierarchy of brand assets,
including awareness, feelings of familiarity, brand image,
interests in purchase and/or investment, an customer
loyalty
Conceptualises the level of bonding between customer and
a brad resource with the consumer in the highest
achievable lever of attachment
High brand equity
entails loyal customers paying extra for a product carrying your
brand name
Based on the CBBE-model, resonance is about the relationship
with the brand
The brand relation with the weekly magazine
Donald Duck is a nostalgic attachment
Ingame (image) advertisement
refers to advertising a third party product in a
game
Billboarding

is advertisement in which the advertiser

associates with the show by means of short
announcements or titles, such as This
programme was brought to you by...
Mailbox advertising
A strong point is the fact that the medium reach is equivalent to
the advertising reach
Value Pricing
Setting the price based on buyers perceptions of value rather
than on the sellers costs
Good-Value Pricing
Pricing that offers exactly the right combination of quality and
good service at a fair price
Value Added Pricing
Attaching value-added features and services to differentiate a
companys offers ad charging higher prices
Cost Based Pricing
Setting prices based on the costs for producing distributing, and
selling the product plus a fair rate of return
for effort and risk
Cost-Plus Pricing
Adding a standard markup to the cost of the production
Break-Even Pricing
Setting the price to break even on the costs of making and
marketing a product, or setting price to make a
target profit
Target Costing
Pricing that starts with an ideal selling price, then targets costs
that will ensure that the price is met
Penetration Pricing
Introducing a new product at a low shelf price to gain a high
number of consumer (new magazines often use
that strategy)
Price Discrimination
Charging different prices for the same service / product. For
instance different prices for the seats in a theatre

Cross Elasticity
is the change in demand for product A, as a result of a pricing
change of product B
Selection Indicator
Shows the relation between the sales of all involved points of
sale and the sales of an average point of sale in
the industry
Psychographic Criterion
Lifestyle marketing segmentation; media companies use
variable lifestyles for purposes of market
segmentation
Physical Context of Experience is determined by design
and ...?
Gender Complexity
Means the differences between male and female are fading

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M EDIA
Chain: Music publisher, record company, record distributor,
music store, consumer
iTunes (tunecore) is an example for online sales possibilities
A music studio consists of a recording room and a control
room
Producer is the central person during a recording session
Choosing a music studio consider: Location, price per hour,
equipment
Frequencies audible for a human: 20Hz up to (20.000Hz)
20kHz
UK radio in 1960s were almost just local stations and a few
regional ones
Post-Production TV program (dealing with arrangements
made with the studio guests about travelling expenses) general
term for all stages of production occurring after the actual end
of shooting
Soundman aka Wild One quiet on the set to record set
noise
Umfeld is the editorial environment of your advertisement
Amount of advertisement in the Netherlands amounts
1.5 billion
Print-ready PDF is a locked file that can be printed without
further editing
RFID Tag (Radio Frequence Identification) is the use of
an object applied to or incorporated into a product, person or
animal for the purpose of identification and tracking using radio
frequencies

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New Media is characterized by being digital, interactive and

integrative
According to Miller there are 4 technological trends
networks, devices, interfaces and user focus
Foley Artist records ordinary sound effect
Blind Bidding buying the rights for a movie only by reading
the script; before it has been produced
Block Booking doing a package deal (fx Harry Potter)
Broadcasting includes every single thing being broadcasted
Narrowcasting describes only a certain show / station
aiming at one specific group
Elements of the Communication Process Sender Message
Transmitter Channel Signal - Noise Receiver - Destination
Artist Contract traditional contract with an artist
BBC Radio 4 is distinctive and significant Bothe (question out
of progress test)
Rule of third is a principle of composition
72 dpi main resolution on internet
www service on the internet via a graphical face
Multi Cable different cables combined into one thick cable

L AW
Copyright (after Berne Convention) is valid until 50 years of
the creators death
Moral Right enables the author to object & modify his work

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Undischarged Bankrupt cannot become a company director

of a public company
Related Rights Right of broadcasting organisations in their
radio and TV programmes
Applicableness to Everyone no copyright applies to legal
texts in NL
BE
Repayments item of expenditure that is never a cost item
Convertible Bond Loan the holder is entitled to convert the
interests into a repayment under predetermined conditions
Leverage = Fremdkapital zum Ausgleich aufnehmen
Leverage Effect derives from the fact that the loan capital
yields more than the costs
Current Ratio can be calculated with the balance sheet
UFO Method equity capital and break-even turnover
Solvability Debt ration of 0,75
Liquidity is improved by converting a current account loan
into a five year loan account
Budgeted Operating Balance Sheet capital expenditure
budget & financing sheet
Historical Costs Principle
How we arrive at a value for our lost of goods sold and
ending inventory
sales costs of goods sold (COGS) = net income
current assets on balance sheet (BS)
use the price that we paid for our goods at the date we
purchased them
FIFO First In First Out

13

LIFO Last In First Out

Sales break even pint
actual sales
* 100% = Safety Margin
Fixed
costs
Selling price variable costs = break even analysis
(Ps*Pa) *Qa = Price Variance
(Qs-Qa)*Ps = Efficiency Variance
(Qs*Ps)-(Qa-Pa) = Budget Variance
Volume Variance + Gross Profit = Operating Income
Units * (Selling Costs per Unit) = Gross Profit
(Actual Volume * Normal Value) * Fixed Costs per Unit =
Volume Variance
FC
+
NV AV

VC
= Cost per Unit

Contribution margin = Sales Variable Costs

C ULTURE
Horizontal = Benetton
Serial format = Opera Soap
Horizontal programming = RTL 4, same type of show
everyday
Syntactical level = the element of a lonesome cowboy within
a western
Culture policy document = 4 year plan
Standardization = Teenagers moving to a different country,
adapting the local culture
Index Sign = Picture with footprints

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G ENERAL M ANAGEMENT
Internal Audit shows upon organizations opportunities &
threats
5 competitive forces (Porter)
Threat of Entrant
Power of Supplier
Competitive Rivalry
Threat of Substitutes
Power of Buyer
Attitude Individual features described as relatively constant
response to circumstances
Secondary Process includes activities like personnel,
financing, data systems
Duplex Communication System consists of two factors
communicating both ways
Half Duplex only enables one sender at the time to transmit
information
Full Duplex both can communicate and transmit
simultaneously
Hypodermic-Needle Theory Mass media have an influence
on an individual whilst forming their opinions and beliefs
Two-Step-Flow Theory information form mass media is
evaluated and passed on to individuals by an opinion-leader
Uses & Gratification Theory the active participation and
the chance to adapt the news spread
Agenda Setting Theory filtration of news done by media
Media Pluralism describes the diversity of media and is one
of the basic characteristics for a demographic society
Patent a patent protects industrial goods like new and useful
inventions and is valid 20 years

15

Copyright protects original literary, artistic (etc) works; is

valid 50 years after the originators death (Berne Convention)
G ROWTH S TRATEGY (A NSOFF )
o Market Penetration increasing sales of an existing
product and penetrating the market further by either
promoting the product heavily or reducing prices
o Product Development developing new products within
existing market
o Market Development selling existing products to a
new market
o Diversification moving away from core activities to
something new - new product and new market
o Consolidation scaling back operations and
concentrating on existing products in existing markets
Planning Cycle Analyze situation Strategy Formation
Implementation Feedback Analyze Situation
Alderfer / ERG Theory three different needs are working
simultaneously
o Existential Needs psychological + security needs
o Relation Needs social aspects
o Growth Needs self-development
Two-Factor (Motivation-Hygiene) Theory by Frederick
Herzberg
Satisfaction and dissatisfaction are not necessarily connected to
each other though and both can be caused from different
factors, not one relating out of the other one.
Hygiene factors can prevent dissatisfaction but dont prevail
to dissatisfaction. Mostly these factors arent recognized or are
taken for granted.
o salary
o personal policy
o working conditions
Motivators: for higher performances normally stern from the
job content. These motivators have an impact on the persons

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satisfaction, but a lack of them doesnt have to lead into

dissatisfaction. Aspiration of growth and complacency are the
most important things.
o performance and success
o responsibility
o growth
Organisational Balance occurs when technical &
economical effectiveness (utilisation of resources), psychosocial
effectiveness (employees needs), social effectiveness (needs
for external parties) and managerial effectiveness (flexibility &
adaption to changing environment) is accomplished in the best
possible way
Handys Typology degree of cooperation, power of
distribution
Soatial Symbolism concerning the organisation and the
employees, buildings architecture & environment, interior
design
Symbolism of Language Identity, Influencing
D IFFERENT MANAGER R OLES
Interpersonal Role responsible for professionalism and
results; figurehead, leader, liaison officer
Informal Role informing organisation & involved parties
about changes; observer, disseminator of information,
spokesperson
Decision-Making Role implementing policy, needing
detailed information to make reasonable decisions;
entrepreneur, trouble shooter, provider of resource, negotiator
Strategic Information are about competitors, the market
and policies etc. describing the organisations position within its
environment
Tactical & Organisational Information relating to internal
management helping to make decisions

17

Operational Information refer to the primary process of the

organisation for instance production, transport, administration
and sales
Attraction Interest Desire Action Communication Model
Strength Weakness Opportunities Threats
Demographical Regulatory Technological Social
Plan Do Check Act model
Specific Measurable Realistic Time Objectives
Political Economical Social Technological (Legal
Environmental) External macro environment analysis,
uncontrollable variables
Micro Environment Customers, Employees, Suppliers,
Stakeholders, Media, Competitors
Marketing Concept Production (Economy of Scale), Product
(Quality&Service), Sales, Market Orientation (Customer Value)
Market Research Researching specific industries or markets
Marketing Research Analysing a given marketing
opportunity or problem. Aims to discover the root cause for a
specific problem within an organisation and pit forward
solutions to the issue
4Ps / Marketing Mix
o Product benefits, position, differential advantage
o Price
o Promotion Advertising, PR; Sales Promotion, Personal
Selling, Direct Mail
o Place Intensive (lo price, impulsive buying chocolate
soft drinks), Exclusive (limiting distribution to single outlet
high price), Selective Distribution (small number of retail
outlets)

18

Branding A brand is a name, term, sign, symbol or

combination of these that identifies the maker or seller of the
product
Branding Strategies
o Line Extension Adding versions with new features etc.
to an already existing product line
o Brand Extension Using brand name for new, extended
products (fx Virgin Records; airlines, mobile)
o Multi Branding Introducing new brands to an already
existing category. Can maximize profits, but brands are
competing with each other (fx Kelloggs & Axel Springer

S ERVICE M ARKETING / C HARACTERISTICS OF A S ERVICE

Lack of Ownership
A service cannot be owned. Is used/hired for a certain amount
of time
Service intangibility
A service cannot be seen, tasted, felt, heard or smelled before
they are bought
Service inseparability
A service is produced and consumed at the same time and
cannot be separated from their provider
Service variability
A services quality may vary greatly, depending on who
provides them and when, where and how
Service perishability
A service cannot be stored for later sale or use due to time
constraint customers demand more
Heterogeneity
Service experiences are not identical

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Service-Profit chain
The chain that links service firm profits with employee and
customer satisfaction
Internal Service Quality employee selection and training,
quality work environment, and strong support for those
dealing with customers
Satisfied & productive service employees more satisfied,
loyal, and hardworking employees
Greater service value more effective and efficient
customer value creation and service delivery
Satisfied & loyal customers who remain loyal, repeat
purchases, & refer other customers
Healthy service profits & growth superior service firm
performance
Service Marketing Mix (7Ps) Product, Price, Promotion,
Place and additionally
o People Recruiting right staff & training them
appropriately
o Process Use system to assist the organisation in
delivering the service
o Physical Evidence Element of the 7Ps that allows the
consumer to make judgements on the organisation (how
clean a restaurant is)
Consumer Buyin Behaviour
o Problem / Need recognition
o Information search
o Evaluation of different purchase options
o Purchase Decision
Maslows Hierarchy of Needs
Physiological Needs
Safety Needs
Social Needs
Esteem Needs
Self actualization
Convenience Goods Inexpensive frequent purchases )Milk,
Eggs)

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Shopping Goods High risk products, consumer looks for the

best feature and price (fridge, freezer etc)
Specialty Goods Purchased infrequently, consumer does
extensive research (car, diamonds, watches etc)

P ROMOTIONAL M IX IN DE TAIL
Personal Selling One to one basis, face to face or via phone
Direct Mailing Create one to one relationships with target
market; post, email, phone
Advertising Placing message in any form of paid media to
promote, remind, support, complete & persuade
o above the line advertisement = cinema, TV, radio,
papers
o below the line advertisement = direct mail,
sponsoring, sales promotion
Sales Promotion Increase short term sales & instore or web
traffic loyalty cards, coupons, price promotion...
PR Promoting the image, per release, company literature,
videos, websites, annual reports
Sponsorship providing money to an event being
acknowledged
Viral Marketing using pre-existing social networks to
increase brand awareness through self-replicating viral
processes (like a virus)
Guerrilla Marketing in an unconventional system of
promotions that relies on time, energy and imagination rather
than a big marketing budget. Unusual approaches to get
maximum results from minimal resources
Buzz Marketing word-of-mouth marketing, hype among
consumers, a vague but positive association, excitement, or
anticipation about a product or service
Affiliate Marketing interned-based, a business one or more
affiliates for each visitor or customer brought about by the
affiliates marketing effort, using one website to drive traffic to
another

21

M ARKETING P L AN helps to organize the strategy for a company,

its products or services
Corporate Plan & Objectives
Marketing Plan

Production Plan
Resource Plan

Human

1. Internal Audit
o Past objectives & success rates
o Past marketing mix strategies
o Past budgets
o Past segmentation, targeting & positioning strategies
External Audit
o PEST
o Industry research, trends etc.
o Competitor analysis
o SWOT
2. Setting objectives SMART (Specific Measurable
Achievable Realistic Time)
3. Segmentation, Targeting, Positioning, 4Ps
4. Evaluating Strategy (market share data, sales data,
feedback)
5. Executive Summary
Customer Relationship management (CRM)
o Helps segmenting most profitable customers by using
simple data
o Helps targeting products at customers by looking a their
pas purchase patterns
o Provides staff with all necessary information
CRM tries to ensure that customer information can be accessed
at any point within the organisation

22

Customer Loyalty Relationship marketing is about

developing long term relationships with customers
o Suspect attention via promotion, potential
prospect for the company
o Prospect interested in promotion potential
customer
o Customer purchases product or service
o Client comes back
o Advocates promotes business on your behalf
B OSTON C ONSULTANCY G ROUP (BCG) M ATRIX
o Dig Low market share & market growth rates
o Question Mark low market share, but high market
growth rates lots of resources, hoping to increase profit
o Star high market shares that operate in growing markets
positive returns for the company
o Cash Cow high profits, growth rate is slowing
P RODUCT L IFE C YCLE (PLC)
o Introduction new product, much time spend to create
awareness of its presence amongst its target market
profits are negative or low
o Growth consumers feel the products benefits in the
same ways and accept it. Rapid sales growth
o Maturity Sales slow down as the product sales reach
their peak
o Decline Sales and profit start to decline, might change
pricing strategy to stimulate growth, re-modify or replace
product within the market
P URCHASE B EHAVIOUR / T YPES
Innovator purchasing product at the beginning pt the PLC,
not afraid of trying new things
Early Adapter usually opinion leaders
Early Majority only purchasing a product once it has been
adopted by society, usually some status in society
Late Majority purchasing product at the last stage of the PLC
Laggards Wait & see

23

M ANAGEMENT S TYLES
Demographical Leader manager delegates responsibility for
the task giving them full authority
Autocratic Leader manager who tells staff what to do and
makes the final decision
Consultative Leader manager listens to staff and then
makes the final decision
Laissez Faire Manager sets the tasks and gives staff
complete freedom to compete the tasks as they see fit
Leader sets the goals, decides that the path goes from A to
B, inspires & motivates the team, reviews progress & controlling
Manager Plans projects (budgets, pay, material), implements
plans & controls, organises & delegates team, overcomes
problems
Reward Power needs followers to believe leader will reward
them
Coercive Power needs followers to believe leader will punish
them
Legitimate Power needs followers to believe leader has the
right to instruct them
Referent Power needs followers to believe leader has
desirable qualities
Expert Power needs followers to believe leader is an expert

O RGANIS ATIONAL S TRUCTURE

Span of Control numbers of employees that each manager /
supervisor is responsible for
wide
narrow span of control
Tall Organisation Structure
Managing Director
Manager

Manager

Manager

24

Staff

Staff

Staff

Staff

Staff

Staff

Positive about tall organisation structure

o narrow span of control
o clear management structure
o function of each layer is clear and distinct
o clear lines of responsibility & control
Negative about tall organisation structure
o freedom & responsibility of employees is restricted
o decision making could be slowed down as approval may be
needed by each layer
o communication goes through many layers
o high management costs

Flat Organisation Structure

Managing Director
Manager
Staff

Staff

Staff

Positive about flat organisation structure

o more / greater communication between management &
employees
o better team spirit
o less bureaucracy easier decision making
o fewer management levels
Negative about flat organisation structure
o more than one manager / boss
o limit / hinder growth of organisation
o structure limited to small organisations
o function can be blurred and mix into job roles of others

25

Hierarchical Organisation
Ranked at various levels, each level is one above the other;
there are tall & flat hierarchical organisations
Chief Executive
Manager
Assistant Manager

Manager
Assistant Manager

Staff Staff Staff

Staff Staff Staff

Positive about hierarchical organisation

o authority & responsibility are clearly defined
o clearly defined promotion path
o specialists, hierarchical environment encourages the
effective use of specialist managers
o staff is very loyal to its department
Negative about hierarchical organisation
o can be too bureaucratic and respond slowly to changing
customer need and the market changes
o communication can be poorly, especially horizontal
o department can make decisions which benefits them, not
the entire company
Centralized Organisation Structure
o senior manager have greter control
o standardised procedures can save costs
o decisions benefit whole company
o benefits from experience of senior manager
o strong leadership for uncertain times

26

Decentralized Organisation Structure

o senior manager can concentrate on core decisions
o decision making is form of empowerment can increase
motivation staff output
o staff in lower chain know their work environment better
o empowerment enables departments & staff to respond
faster to changes & challenges
o empowerment makes it easier for people to accept &
makse a success of more responsibility
Quality
Adding Value value is added to a product by ensuring that
products/services have the quality consumers require
Quality Control, Quality Assurance, Quality Circles, Training
B USINESS T YPES
Soletrader owned by one person, business will trade under
the owners name o one chosen by the sole trader. can keep all
profits, no legal restrictions affecting the business
Partnership two or more people join forces to own & run a
business, unlimited liability
Franchise an organisation utilising a business idea belonging
to another
Co-operatives a group of businesses or individuals come
together for a common reasons
Limited Company is a business owned by a group of people
who dont want to have unlimited personal liability for the debts
of the business
Private Limited Company (PLC) owned privately by a small
group (fx family), not allowed to offer shares to general public,
cannot trade shared on the stock market

27

Public Limited Company (Ltd) able to trade on the stock

market, minimum share capital of pound 50.000, minimum of
two directors, name must contain plc
O RGANIS ATIONAL C ULTURE
Role Culture the organisation revolves around rules and
procedures. These give stability and security. Organisational
functions set the tone, not the people who perform these
functions. Bureaucratic organisations typify these kinds of
organisations
Backward Looking Culture doesnt embrace change & is
led by systems & preocedures
Forward Looking Culture the organisation has an
entrepreneurial spirit and always embrace change
Task Culture a team based approach to complete a
particular task
Power Culture decisions in an organisation are centralised
around one key individual
Person Culture focuses on an individual or particular aim
Peripheral not the main action, like the tickets to a concert
Facility Service services that are produced by an operation
to support its products (added to core service)
Theme Based Service a link between inherently
(grundstzlich) varied supply of goods, services and
experiences
Commodity Good Service Experience
Primary Process all activities that contribute directly to the
making of the product
Secondary Process all activities that support the primary
process

28

Strategic Drift an organizations strategies progressively fail

to address their strategic position
Market Synergy new product fits in well with the existing
image of the firm. Value can be enhanced across
complementary business units
X-Theory the manager reckons that his employees are lazy,
unmotivated, dont want any responsibility and no willing to
work. They need to be forced and are only interested in money.
Y-Theory the employees are motivated, accepting
responsibility and work is seen as a natural process. They are
innovative, creative and money is incentive
Intermediate / Middle Line Managers who either direct
staff or other managers
Technical Staff Supervisors, Planners, Planning engineers
Support Staff salary administration, PR, research &
development

C OORDINATION M ECHANISMS
Mutual Adjustment formal & informal communication
between workers, regular consultation, evaluation, internships
etc
Direct Supervision managers issue assignments &
instructions to staff in respect of tasks to be performed
Standardizations of Work Process tasks are specified &
standardizes
Standardisation of Outputs specification of result (financial
targets, customer satisfaction norms, quality criteria)
Standardisation of Skills activities are coordinated on the
basis of training & experience of the individual (fx surgeon)

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Design Parameters define the way tasks are divided in a

business
Specialisation of tasks number of tasks per function & how
responsibility and authority are divided
Size of departments or groups number of tasks per
function & how responsibility and authority are divided
Centralization or decentralization degree to which
decision-making authority is assigned to staff lower down
hierarchy
Formalisation of behaviour rules, procedures, job
description standardised or not
Contingency / Situational Factors influence the way parts
of the organisation are set up, choice of coordination
mechanism and most appropriate design of parameters
Structure depends in these contingency factors
Technical System of an organisation (level of automation)
Environmental Characteristics dynamic complex = organic
/ decentralized
Age & Size of the organisation, growth or age more formal
in nature
O RGANIS ATIONAL F ORMS
Entrepreneurial Organisation flat structure, activities
revolve around manager, charismatic & or autocratic
leadership, visionary in nature, flexible, spontaneous, highly
market-oriented, small, new business, informal communication,
rarely standardised
Machine Bureaucracy formalised communication channels
and decision-making, technical staff has standardized tasks,
supporting units are independent, larger organisations, stable

30

environment (macro), mass production, manufacturers, nonprofit, rational, reliable, consistent

Professional Organisation highly skilled/professional staff,
tasks are fairly routine or professional, intensive training,
standardization of skills and knowledge, support staff assists
Diversified Organisation number of semi-independent
units, central management / head office, head office (HO)
formulates targets in terms of sales growth & output, Fortune
500, HO defines group strategy, divisions develop own
strategies
Innovative Organisation highly organised structure, little
standardisation avoids fixed patterns, multidisciplinary teams,
experts, managers, coaches & supporting staff work together
Missionary Organisation strong ideology, shared values &
beliefs are deeply anchored, charismatic leadership, clear &
inspiring aim, little difference in status
Political Organisation influenced by ideology, authority,
expertise & politics
Internal Differentiation activities grouped by functions into
different divisions
Internal Specialization activities divided into product,
geographical or market division with grouping based on end
result
L EADERSHIP S TYLES
Authoritarian Leadership gives orders, power used to
establish authority, all decisions made by leader
Democratic Leadership group participation, involved in
decision-making
Participating Leadership leader retains responsibility,
members are asked to discuss & participate, final decision is
made by leader after consulting staff

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Transformational Leader ship (after Bass) fast changes,

need to be carried out quickly, awareness, insight, creativity,
harmony, intuition
Self Leadership not superior, same level as staff, simulates
employees
Leadership grip of Blake & Mounton
C
o
n
c
e
r
n
for
P
e
o
p
l
e

Leadership Grid
10
8
6
4
2
0
0

10

Concern for production

1.1
9.1
1.9
5.5
9.9
Productivi Small
High
Small Moderate High
ty
Communi Superfici One-Way
Inten Consider Open
cation
al
se
able
Attitude
Hardly
Directing
Positi Listening Pleasa
towards
involved
ve
nt
employee
s
Motivatio Hardly
Punishment Stron Moderate Very
n
&Fear
g
Strong
Attitude
Indiffere Ignoring
None Solving
Remov
towards
nce
ing
mistakes
Causes
Hershey & Blanchard
Degree of relatinal (given) support (y-axis)
Degree of tasks orientation (giving instructions) (x-axis)

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Y
Y
Y
Y

high, X low = Participating (able/not willing)

high, X high = Selling (unable/willing)
low, X low = Delegating (able/willing)
low, X high = Telling (unable/unwilling)

Adhocracy is a stereotype of organizations that are tacked by

constant changes (fx innovative organizations)
Cause-Effect Diagram (Ishikawa) searching out the root
cause of problems; systematic questioning technique
PARETO analysis/law indicates that 20% of sth causes 80%
of sth else. (20% of products produce = 80% of value)
EFQM Excellence Model examines a companies quality step
based on 7 key factors

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